Cap-and-trade has been criticised in California for allowing big emitters to pay their way out of reducing emissions and cause pollution. It’s become a social justice issue as poorer communities tend to be located near where the pollution is being created. James Bushnell at the Energy Institute at Haas warns that such clashes are being caused by the mistaken view that climate policy should be a major tool for reducing inequality. In fact, some … [Read more...]
California learns even flexible Emissions Markets won’t guarantee price stability
In May, emissions allowance prices hit rock bottom in California. How can cap-and-trade work properly when prices are so volatile and difficult to predict? It makes life very difficult for businesses and investors, not to mention the state. Changes to the rules are being proposed to introduce more flexibility into the effective price floors, ceilings and the availability of allowances. But Severin Borenstein at the Energy Institute at Haas … [Read more...]